Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:04/22/2025

  Type:Product Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  All payroll services for ******* ******** *** through Payroll4free.com were cancelled as of March 5, 2025. On April 1, 2025 the annual fee of $350 was withdrawn from ******* ********* bank account. There was also a $30 late fee charged to ******* ******** *** for a late submission of the W2 submitted late on February 22, 2025 by payrolll4free. I would like to get the $350 and $30 refunded back to ******* ******** ***. I have tried to contact Payroll4free multiple times through voicemail and emails sent over the past 3 weeks with no response.

• Initial Complaint

  Date:04/15/2025

  Type:Product Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Payroll4Free is supposed to be filing my monthly, quarterly, and annual payroll forms and payments. Their customer service is nearly impossible to contact or get a response from. They file many returns/payments late and then flat out refuse to issue a refund to me after I pay the penalty assessed by the IRS or state.
  
  One example is they filed my September 2024 Illinois withholding payment late (See attached). I paid the penalty of $92.42 but they refuse to reimburse me for it.
  
  They need to be investigated for fraud.

• Initial Complaint

  Date:03/25/2025

  Type:Customer Service Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I have been using this software for about 8 months with little to no problems. I took part in the ******** campaign in hopes of expanding the company. Within the last few months I have been unable to make contract with anyone in the tax team and the people that I am able to get to can not or will not assist and only refer me to that tax team. Part of the services that are paid or to file both state and federal tax however 4th Quarter taxes has not been files yet and I have not been able to get an explanation as to why or when they will be.
  
  When I reach out to attempt to resolve error messages I get passed around several times before being told that I would get a call back but never get called back. Unable to run payroll for an employee due to this error messages.
  
  The software is to be free and I understand that it is a limited software but when Im paying for tax services I expect to be able to have those taxes taken care of or at least have some communication as to what is going on, when it will be resolved or directions on how to resolve it on my own to avoid legal complications with unpaid taxes.

• Initial Complaint

  Date:03/18/2025

  Type:Customer Service Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I used Payroll 4 Free's service to run payroll as well as to handle my quarterly filings. I received a notice from the IRS stating that I was being fined because one of the quarters wasn't filed. I reached out to Payroll 4 Free several times about this. Finally I spoke directly to the VP of the company. She personally took over the file and was working with the IRS to fix the mistake their company made. I reached out again several times and she assured me through an email that I would not be responsible. This was one of her emails:
  
  "I apologize about the delay in getting back to you, but I was out of the office last week and am still playing catch up. We have sent a follow up communication to the IRS and are awaiting their response. I have asked for them to respond to me directly. I will let you know as soon as I hear something. Please keep in mind that it may take 30 to 60 days (hopefully no more) for them to do that. I also would like to assure you that if their response is not favorable, we will most certainly pay all associated penalties and interest on your behalf. Please let me know if you have any other questions. Thank you."
  
  I continued to follow up and received no resolution. Apparently the VP left the company, late 2024. It's also apparent the company is having both internal problems as well as problems with other clients they have also handled improperly. I have since reached out to the current owner Chaim several times, with all the emails exchanged with company representatives and there has been no response.
  
  I would like to receive the $3,600 IRS fine, as promised since it was incurred due to the negligence of Payroll 4 free.

• Initial Complaint

  Date:03/07/2025

  Type:Product Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I was enrolled in tax services for $35 per month. I discovered that they were not filing my taxes timely or properly. When I contacted the business, they blamed a vendor and said I had to contact them rather than them taking care of the issue. I was not contracted with the vendor - they were using the vendor to fulfill my contract with them. I wrote to them to cancel the service. I made the request in the time frame they told me and provided all the documentation they requested. The following month, instead of my account being canceled, they charged me again. And again, instead of being responsible to me, their customer, they connected me to some vendor and admitted they can't get ahold of the vendor. Then, the vendor filed my taxes (a service I had already been told was canceled) and it resulted in money being withdrawn from my account and causing overdraft fees because my new tax filer had also paid the taxes because Payroll4Free told me they would not file. I have had to put a stop on their payments with my bank because they keep charging me. Do not give your financial info to this company. They are not careful with it and "Payroll4Free" is a scam. Since I've signed up they ask for money all the time. Supposedly for stock in their company. But they are not even doing the work! They provide a program with an extremely hard to use interface and then contract out work that they charge extra for and then don't take any responsibility for how that work is done. I am very disappointed in this company and can't believe that something as important as payroll taxes would be handled so poorly.

• Initial Complaint

  Date:03/03/2025

  Type:Product Issues
  Status:

  UnresolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I was a customer for 2 years. As it states on their website, I paid to have Payroll4Free "make all necessary deposits and filings on your behalf if you choose, including all year-end processing such as W-2s, for a low monthly fee." However in Q4/2024, they started to lapse on making proper payments to CA EDD for state payroll taxes, and as a result, I was levied $211 in penalty. I asked Payroll4Free to take responsiblity for their oversight, and I was stonewalled.

• Initial Complaint

  Date:02/07/2025

  Type:Product Issues
  Status:

  UnresolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Payroll4free filed my 2nd quarter payroll taxes 2024 late and did provide a reimbursement of penalties and interest for charges from Colorado Unemployment. They filed 3rd qtr late and promised a reimbursement but it’s been 5 months and I haven’t received it. I paid my own 4th qtr taxes and year end taxes and cancelled services but they ignored cancellation and are still billing me a monthly fee. I sent in the first cancellation 1/14/25 stating they could do year end taxes but knew they wouldn’t do it so I sent in a new cancellation 1/20/25 with new instructions that I would be paying year end taxes. They are now saying I did not cancel within the 15 day prior notice period and that’s why they charged me for Feb services. I have no faith that they will stop billing my account fraudulently and now have to put a $35 stop pay in at my bank, BMO. I haven’t used any services since Oct 2024 due to their negligence. After I filed my own year end taxes they duplicated the filing to the state of Colorado for income taxes and unemployment, further compounding the amount of work I will have to do to fix my accounts. I would like a refund for Nov, Dec, Jan, and Feb services and for 3Qtr COUI interest and penalties I incurred as a result of their negligence. I would also like a $35 reimbursement for the stop pay at my bank. Besides my supporting evidence you can take a look at their other google reviews. I wish I had don’t that earlier.

  Business Response

  Date: 03/07/2025

  Dear Clients,
  
  I understand your frustrations regarding the penalties and appreciate you bringing these matters to our attention.
  
  Unfortunately, Payroll4Free has been undergoing a challenging transition due to the illness and passing of our President and founder, along with other unforeseen departures of critical personnel. These events have occurred within the last half year, and I have recently volunteered all of my time in an effort to assist clients and help the company recover.
  
  As I work to balance the needs of all clients while attempting to bring the company back to stability, we are facing limited resources and many challenges: the company's financial position, the lack of service and support personnel, and the extra work of looking back and figuring out what has been or hasn't been done for each client account over the last half year. The overwhelming amount of tasks to fix known issues, compounded by the discovery of additional problems, is further complicated by the complexities of individual state and local tax systems, the lack of senior staff to guide us on how to best handle each situation, and the conflicting guidance we have received from both government bodies and outside professionals.
  
  I want to assure you that the majority of our clients were not impacted, and neither was the filing of federal taxes. The issues centered primarily on a few states due to their particular tax systems: NY, OH, VA, and NC. If you are in any of these states, I encourage you to respond yourself immediately to any notification from the state or local municipality, and suggest that you consider using a different payroll service for state and local taxes for the time being.
  
  I apologize that individual responses to each inquiry or issue are not happening quickly. The nature of the situation requires us to prioritize actions that will have the most positive impact on the largest number of clients.
  
  Here is what we are doing:
  * We are training new staff to both service clients going forward and rectify issues from the previous quarters.
  * We are in conversation with other companies to possibly take over responsibility for the tax filings.
  * We are taking a serious look at the viability of the tax service department as a whole, and for each state individually.
  * We are actively in contact with state and local tax departments to waive penalties.
  
  As we stabilize the situation, I will be exploring other ways to rectify issues for clients who have been impacted by the company's recent challenges. However, this will take some time.
  
  Billing errors on terminated accounts will be reimbursed as quickly as possible.
  
  Thank you for your understanding.
  
  Sincerely,
  Chaim

  Customer Answer

  Date: 03/11/2025

  Better Business Bureau:
  
  
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
  
  while I appreciate the struggles I do not appreciate being repeated lied to and I do require a refund for late fees and penalties charged to me from the state of Colorado, as well as being am charged for a service that was not delivered and for having to add a stop pay at my bank because they would not cancel my subscription in a timely manner.  I require a refund (already justified these costs) of $121.78.
  
  
  
  Regards,
  
  
  
  ***** ******
   
  
  
  
  
  
  
  
   

• Initial Complaint

  Date:01/10/2025

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Hired payroll company to use payroll software and for them to file payroll taxes. We have been using this company for many years. In October we received a notice that our withholding taxes were not filed/paid (failed to file NYS-45) and we were fined. I have reached out to the payroll company dozens of times, sent emails, threatened to hire an attorney... no solutions. There is one employee, Judy, who answers, apologizes and says she doesn't have the power to fix it. We have now received over $1000 in fines and it is growing. This company has failed to provide services they guaranteed and now I am being fined by the state.

  Business Response

  Date: 03/05/2025

  Dear Clients,
  
  I understand your frustrations regarding the penalties and appreciate you bringing these matters to our attention.
  
  Unfortunately, Payroll4Free has been undergoing a challenging transition due to the illness and passing of our President and founder, along with other unforeseen departures of critical personnel. These events have occurred within the last half year, and I have recently volunteered all of my time in an effort to assist clients and help the company recover.
  
  As I work to balance the needs of all clients while attempting to bring the company back to stability, we are facing limited resources and many challenges: the company's financial position, the lack of service and support personnel, and the extra work of looking back and figuring out what has been or hasn't been done for each client account over the last half year. The overwhelming amount of tasks to fix known issues, compounded by the discovery of additional problems, is further complicated by the complexities of individual state and local tax systems, the lack of senior staff to guide us on how to best handle each situation, and the conflicting guidance we have received from both government bodies and outside professionals.
  
  I want to assure you that the majority of our clients were not impacted, and neither was the filing of federal taxes. The issues centered primarily on a few states due to their particular tax systems: NY, OH, VA, and NC. If you are in any of these states, I encourage you to respond yourself immediately to any notification from the state or local municipality, and suggest that you consider using a different payroll service for state and local taxes for the time being.
  
  I apologize that individual responses to each inquiry or issue are not happening quickly. The nature of the situation requires us to prioritize actions that will have the most positive impact on the largest number of clients.
  
  Here is what we are doing:
  * We are training new staff to both service clients going forward and rectify issues from the previous quarters.
  * We are in conversation with other companies to possibly take over responsibility for the tax filings.
  * We are taking a serious look at the viability of the tax service department as a whole, and for each state individually.
  * We are actively in contact with state and local tax departments to waive penalties.
  
  As we stabilize the situation, I will be exploring other ways to rectify issues for clients who have been impacted by the company's recent challenges. However, this will take some time.
  
  Billing errors on terminated accounts will be reimbursed as quickly as possible.
  
  Thank you for your understanding.
  
  Sincerely,
  Chaim

• Initial Complaint

  Date:01/09/2025

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I was informed that Chaim R******** assumed the leadership and responsibility of the company following the passing of his father, Mike Rosenberg (Owner/President). However, I've encountered significant challenges in reaching him—Chaim has not been responsive to emails, and there is no direct contact number available.
  
  Several issues regarding delayed filings for the last quarter have been escalated to him by his support staff, yet Chaim has not provided any feedback or resolution.
  
  As a substantial investor in the company through ************************************** *'m uncertain about the next steps. I’m unsure how we can proceed under these circumstances.

  Business Response

  Date: 03/05/2025

  Dear Clients,
  
  I understand your frustrations regarding the penalties and appreciate you bringing these matters to our attention.
  
  Unfortunately, Payroll4Free has been undergoing a challenging transition due to the illness and passing of our President and founder, along with other unforeseen departures of critical personnel. These events have occurred within the last half year, and I have recently volunteered all of my time in an effort to assist clients and help the company recover.
  
  As I work to balance the needs of all clients while attempting to bring the company back to stability, we are facing limited resources and many challenges: the company's financial position, the lack of service and support personnel, and the extra work of looking back and figuring out what has been or hasn't been done for each client account over the last half year. The overwhelming amount of tasks to fix known issues, compounded by the discovery of additional problems, is further complicated by the complexities of individual state and local tax systems, the lack of senior staff to guide us on how to best handle each situation, and the conflicting guidance we have received from both government bodies and outside professionals.
  
  I want to assure you that the majority of our clients were not impacted, and neither was the filing of federal taxes. The issues centered primarily on a few states due to their particular tax systems: NY, OH, VA, and NC. If you are in any of these states, I encourage you to respond yourself immediately to any notification from the state or local municipality, and suggest that you consider using a different payroll service for state and local taxes for the time being.
  
  I apologize that individual responses to each inquiry or issue are not happening quickly. The nature of the situation requires us to prioritize actions that will have the most positive impact on the largest number of clients.
  
  Here is what we are doing:
  * We are training new staff to both service clients going forward and rectify issues from the previous quarters.
  * We are in conversation with other companies to possibly take over responsibility for the tax filings.
  * We are taking a serious look at the viability of the tax service department as a whole, and for each state individually.
  * We are actively in contact with state and local tax departments to waive penalties.
  
  As we stabilize the situation, I will be exploring other ways to rectify issues for clients who have been impacted by the company's recent challenges. However, this will take some time.
  
  Billing errors on terminated accounts will be reimbursed as quickly as possible.
  
  Thank you for your understanding.
  
  Sincerely,
  Chaim

  Customer Answer

  Date: 03/05/2025

  Better Business Bureau:
  
  
  
  I have reviewed the response made by the business in reference to complaint ID ********* and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
  
  
  
  
  [Chime, I’m sorry to hear about your father’s demise. However, it’s important that you address the requests your staff has escalated to you. I made a significant investment in your ****** campaign a couple of years ago, and it may be time to revisit your business model and implement the necessary structural changes. 
  
  Not responding to customer requests is not an option, and it’s unfortunate that we have to discuss this on a public channel. Regarding my concern, I’ve received a third reminder from the Illinois State, which includes increased penalties and a warning that they will withhold processing my federal and state taxes. While the penalty is relatively small, I need a response from either you or Judy as soon as possible.]
  
  
  
  Regards,
  
  
  ******* ****
  
  
  
  
  
  
  
  
  
   

  Business Response

  Date: 04/03/2025

  Client was contacted directly. 

  Thank you!

  Customer Answer

  Date: 04/22/2025

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  
  
  Better Business Bureau:
  
  
  
  I have reviewed the response provided by the business regarding complaint ID ********* and I find the resolution is satisfactory. 
  
  
  
  Regards,
  
  
  
  ******* ****
  
  
  
  Consumer responded to the complaint:

  Yes, they reached out to me, issued a refund toward the state fine, and provided a clear explanation of the current situation. I found their response and actions satisfactory, and I sincerely hope similar incidents won’t happen again. I'm highly hopeful and optimistic moving forward.
  
  

• Initial Complaint

  Date:01/03/2025

  Type:Product Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  We pay for a service from them to file our re-employment taxes and they failed to file on time for October 2024 we got a 50.00 penalty from the state of Florida , they are suppose to give us the penalty amount in a refund , they are not responding to any of my emails or phones calls for the last month Dec 2024 , and we have sent numerous emails and left numerous messages

  Business Response

  Date: 03/05/2025

  Dear Clients,
  
  I understand your frustrations regarding the penalties and appreciate you bringing these matters to our attention.
  
  Unfortunately, Payroll4Free has been undergoing a challenging transition due to the illness and passing of our President and founder, along with other unforeseen departures of critical personnel. These events have occurred within the last half year, and I have recently volunteered all of my time in an effort to assist clients and help the company recover.
  
  As I work to balance the needs of all clients while attempting to bring the company back to stability, we are facing limited resources and many challenges: the company's financial position, the lack of service and support personnel, and the extra work of looking back and figuring out what has been or hasn't been done for each client account over the last half year. The overwhelming amount of tasks to fix known issues, compounded by the discovery of additional problems, is further complicated by the complexities of individual state and local tax systems, the lack of senior staff to guide us on how to best handle each situation, and the conflicting guidance we have received from both government bodies and outside professionals.
  
  I want to assure you that the majority of our clients were not impacted, and neither was the filing of federal taxes. The issues centered primarily on a few states due to their particular tax systems: NY, OH, VA, and NC. If you are in any of these states, I encourage you to respond yourself immediately to any notification from the state or local municipality, and suggest that you consider using a different payroll service for state and local taxes for the time being.
  
  I apologize that individual responses to each inquiry or issue are not happening quickly. The nature of the situation requires us to prioritize actions that will have the most positive impact on the largest number of clients.
  
  Here is what we are doing:
  * We are training new staff to both service clients going forward and rectify issues from the previous quarters.
  * We are in conversation with other companies to possibly take over responsibility for the tax filings.
  * We are taking a serious look at the viability of the tax service department as a whole, and for each state individually.
  * We are actively in contact with state and local tax departments to waive penalties.
  
  As we stabilize the situation, I will be exploring other ways to rectify issues for clients who have been impacted by the company's recent challenges. However, this will take some time.
  
  Billing errors on terminated accounts will be reimbursed as quickly as possible.
  
  Thank you for your understanding.
  
  Sincerely,
  Chaim

  Customer Answer

  Date: 03/05/2025

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  
  
  Better Business Bureau:
  
  
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  
  
  Regards,
  
  
  ******* *******